The United Synagogue Trustees’ Report and Annual Accounts For the year ended 31 December 2012 Registered Charity Number 242552 Registered The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
CONTENTS
Honorary Officers – Trustees, Key Executives & Professional Advisors...... Pages 2 – 3
Details of Synagogues and Schools...... Pages 4 – 11
Trustees’ Annual Report...... Pages 12 – 27
Statement of Trustees’ Responsibilities...... Page 28
Independent Auditors’ Report...... Pages 29 – 30
Consolidated Statement of Financial Activities...... Page 31
Balance Sheets ...... Page 32
Consolidated Cash Flow Statement...... Pages 33 – 34
Notes to the Financial Statements...... Pages 35 – 48
1 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
United Synagogue Annual Accounts Year ended 31st December 2012. Charity registration number 242552.
BOARD OF TRUSTEES JULY 2011 – JULY 2014
President Stephen Pack Vice-Presidents Stephen Fenton Russell Kett Jonathan Miller
Treasurers Stephen Lubinsky Brian Markeson Russell Tenzer
Women Representatives at the Trustee Board Dalia Cramer Naomi Landy Irene Leeman (resigned 6 Nov 2012) Leonie Lewis (appointed 6 Nov 2012) Doreen Samuels
Chief Rabbi of the United Hebrew Congregations of the Commonwealth Chief Rabbi Lord Jonathan Sacks
Executive Director, Office of the Chief Rabbi Joanna Benarroch
Dayanim Dayan Menachem Gelley Dayan Yonason Abraham Dayan Ivan Binstock Dayan Shmuel Simons Key Executives Chief Executive Jeremy Jacobs BSc (Econ), CA, FCCA Operations & Finance Director Richard Taylor ACA (from April 2013) Director of External & Legal Services David Frei LLB Commercial Director (Kashrut) Rabbi Jeremy Conway BA (Hons) Community Services Director David Kaplan MA, LLB Consultant Marketing Director Ian Myers LLB (Hons)
Head of Burial Melvyn Hartog Consultant Director of Property Stephen Rajbenbach FRICS, AciAeb Consultant Director of IT Andy Margolis Consultant Head of Human Resources Delia Goldring Head of Finance Joshua Levy
2 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Committee Chairs United Synagogue Women Dalia Cramer/Leonie Lewis Audit Review Alan Taylor Burial Brian Markeson Rabbinical Council Rabbi B Davis Visitation Keith Simons Property Jonathan Miller Remuneration Stephen Fenton Risk Committee Stephen Pack Investment Russell Tenzer
Executive Offices 305 Ballards Lane London N12 8GB
Tel: 020 8343 8989 Fax: 020 8445 8286 Website: www.theus.org.uk
Registered Charity No 242552
Charity Solicitors Actuaries Farrer & Co Barnett Waddingham LLP 66 Lincoln’s Inn Fields Cheapside House London WC2A 3LH 138 Cheapside London EC2V 6BW
Bankers Fund Managers Royal Bank of Scotland JP Morgan International Bank Ltd Corporate Banking London 125 London Wall 8th Floor London EC2Y 5AJ 280 Bishopsgate London EC2M 4RB
Auditor Crowe Clark Whitehill LLP St Bride’s House 10 Salisbury Square London EC4Y 8EH
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Member Synagogues
Alei Tzion LSJS Schaller House 44a Albert Road Hendon, London NW4 2SJ Email: [email protected]
Barnet & District Synagogue Eversleigh Road, New Barnet, Herts EN5 1ND Tel:020 8449 0145 Email: [email protected]
Belmont Synagogue 101 Vernon Drive, Stanmore, Middx. HA7 2BW Tel: 020 8426 0104 Email: [email protected]
Borehamwood & Elstree Synagogue Croxdale Road, Borehamwood, Herts WD6 4QF Tel: 020 8386 5227 Email: [email protected]
Brondesbury Park Synagogue 143/145 Brondesbury Park, London NW2 5JL Tel: 020 8459 1083 Email: [email protected]
Bushey & District Synagogue 177 / 189 Sparrows Herne, Bushey, Herts WD23 1AJ Tel: 020 8950 7340 Email: [email protected]
Central Synagogue 36 Hallam Street, London W1W 6NW Tel: 020 7580 1355 Email: [email protected]
Chigwell & Hainault Synagogue Limes Farm Estate, Limes Avenue, Chigwell, Essex IG7 JNT Tel: 020 8500 2451 Email: [email protected]
Clayhall Synagogue Sinclair House, Woodford Bridge Road, llford, Essex, IG4 5LN Tel: 020 8551 6533 Email: [email protected]
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Cockfosters & N. Southgate Synagogue Old Farm Avenue, Southgate, London N14 5QR Tel: 020 8886 8225 Email: [email protected]
Ealing Synagogue 15 Grange Road, London W5 5QN Tel: 020 8579 4894 Email: [email protected]
Edgware Synagogue Parnell Close, Edgware Way, Edgware, Middx HA8 8YE Tel: 020 8958 7508 Email: [email protected]
Enfield & Winchmore Hill Synagogue 53 Wellington Road, Bush Hill Park, Middx. EN1 2PG Tel: 020 8363 2697 Email: [email protected]
Finchley Synagogue Kinloss Gardens, London N3 3DU Tel: 020 8346 8551 Email: [email protected]
Finsbury Park Synagogue 220 Green Lanes, London N4 2NT Tel: 020 8802 7004
Golders Green Synagogue Dunstan Road, London NW11 8AE Tel: 020 8455 2460 Email: [email protected]
Hackney & East London Synagogue 2a Triangle Road, London E8 3RP Tel: 020 7254 0183 Email: [email protected]
Hadley Wood Synagogue – (Became a member synagogue in January 2013) 8 Lancaster Avenue, Hadley Wood Herts EN4 0EX Tel: 020 8886 8225 Email: [email protected]
Hampstead Synagogue Dennington Park Road, London NW6 1AX Tel: 020 7435 1518 Email: [email protected]
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Hampstead Garden Suburb Synagogue Norrice Lea, London N2 0RE Tel: 020 8455 8126 Email: [email protected]
Hendon Synagogue 18 Raleigh Close, London NW4 2TA 020 8202 6924 Email: [email protected]
Highams Park & Chingford Synagogue – (Became a member in March 2013) 81a Marlborough Road, Highams Park, London E4 9AJ Tel: 020 8527 0937
Highgate Synagogue 57 North Road, Grimshaw Close, London N6 4BJ Tel: 020 8340 7655 Email: [email protected]
Ilford Synagogue 22 Beehive Lane, Ilford, Essex IG1 3RT Tel: 020 8554 5969 Email: [email protected]
Kenton Synagogue Shaftesbury Avenue, Kenton, Middx HA3 0RD Tel: 020 8907 5959 Email: [email protected]
Kingsbury Synagogue Hool Close Kingsbury Green, London NW9 8XR Tel: 020 8204 8089 Email: [email protected]
Luton Synagogue P O Box No 215 Luton, Beds. LU1 9ZJ Email: [email protected]
Mill Hill Synagogue Brockenhurst Gardens, London NW7 2JY Tel: 020 8959 1137 Email: [email protected]
Muswell Hill Synagogue 31 Tetherdown, London N10 1ND Tel: 020 8883 5925 Email: [email protected]
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New Synagogue Victoria Community Centre, Egerton Road London N16 6UB Tel: 020 8880 2731 Email: [email protected]
New West End Synagogue St Petersburgh Place, Bayswater Road, London W2 4JT Tel: 020 7229 2631 Email: [email protected]
Newbury Park Synagogue 23 Wessex Close, Newbury Park, llford, Essex IG3 8JU Tel: 020 8597 0958 Email: [email protected]
Northwood Synagogue 21-23 Murray Road, Northwood, Middx HA6 2YP Tel: 01923 820 004 Email: admin@northwoodus,org
Palmers Green & Southgate Synagogue Brownlow Road, New Southgate, London N11 2BN Tel: 020 8881 0037 Email: [email protected]
Pinner Synagogue 1 Cecil Park, Pinner, Middx HA5 5HJ Tel: 020 8868 7204 Email: [email protected]
Potters Bar Synagogue 78 Sunnybank Road, Potters Bar EN6 2NH Tel: 01707 656202 Email: [email protected]
Radlett Synagogue 22 Watling Street, PO BOX 28, Radlett, Herts WD7 7PN Tel: 01923 856 878 Email: [email protected]
Richmond Synagogue Lichfield Gardens, Richmond, Surrey TW9 1AP Tel: 020 8940 3526 Email: [email protected]
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St. Albans Synagogue Oswald Road, St. Albans, Herts AL1 3AQ Tel: 01727 854872 Email: [email protected]
St. Johns Wood Synagogue 37-41 Grove End Road, St. John’s Wood, London NW8 9NG Tel: 020 7286 3838 Email: [email protected]
Shenley Synagogue PO Box 205, Shenley, Herts, WD7 9ZN Tel: 01923 635969 Email: [email protected]
South Hampstead Synagogue 21-22 Eton Villas, London NW3 4SG Tel: 020 7722 1807 Email: [email protected]
South London Synagogue 45 Leigham Court Road, London SW16 2NF Tel: 020 8677 0234 Email: [email protected]
South Tottenham Synagogue 111/113 Crowland Road London N15 6UR Tel: 020 8880 2731 Email: [email protected]
Stanmore & Canons Park Synagogue London Road, Stanmore, Middx HA7 4NS Tel: 020 8954 2210 Email: [email protected]
Sutton & District Synagogue 14 Cedar Road, Sutton, Surrey SM2 5DA Tel: 020 8642 5419 Email: [email protected]
Watford Synagogue 16 Nascot Road, Watford, Herts WD17 4YE Tel: 01923 222755 Email: [email protected]
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Wanstead & Woodford Synagogue – (Became member in March 2013) 20 Churchfields, South Woodford, London E18 2QZ Tel: 020 8504 1990 Email: [email protected]
Wembley Synagogue 8-10 Forty Avenue, Wembley, Middx HA9 8JW Tel: 020 8904 6565 Email: [email protected]
Woodside Park Synagogue Woodside Park Road, London N12 8RZ Tel: 020 8445 4236 Email: [email protected]
Affiliated Synagogues
Barking & Becontree Synagogue 200 Becontree Avenue, Dagenham, Essex RM8 2TR Tel: 020 8590 2737
Catford & Bromley Synagogue 6 Crantock Road, London SE6 2QS Tel: 020 8698 9496 Email: [email protected]
Chelsea Synagogue Smith Terrace, Smith Street, London SW3 4DL Tel: 020 7629 0196
Harold Hill & District Synagogue Trowbridge Road, Harold Hill, Romford, Essex RM3 8YW Tel: 01708 348904
Hemel Hempstead & District Synagogue C/o 46 Maitland Joseph House, 35 The Marlows Hemel Hempstead, Herts HP1 1LB
Highams Park & Chingford Synagogue 81a Marlborough Road, Highams Park, London E4 9AJ Tel: 020 8527 0937
Kingston, Surbiton & District Synagogue 33 – 35 Uxbridge Road, Kingston Upon Thames, Surrey KT1 2LL Tel: 020 8546 9370
Peterborough Synagogue c/o 305 Ballards Lane London N12 8GB
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Romford & District Synagogue 25 Eastern Road, Romford, Essex RM1 3NH Tel: 01708 741690
Ruislip & District Synagogue 9 – 17 Shenley Avenue, Ruislip Manor, Middx, HA4 6BP Tel: 01895 622059 Email: [email protected]
Staines & District Synagogue Westbrook Road, South Street, Staines, Middx TW18 4PR Tel: 01784 458283 Email: [email protected]
Welwyn Garden City Synagogue Barn Close, Handside Lane, Welwyn Garden City, Herts AL8 6ST Tel: 01707 322443 Email: [email protected]
Associated Synagogue
Western Marble Arch Synagogue 32 Great Cumberland Place, London W1H 7TN Tel: 020 7723 9333 Email: [email protected]
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UNITED SYNAGOGUE SCHOOLS For whom the US is the Foundation Body.
Hertsmere Jewish Primary School Watling Street, Radlett, Herts WD7 7LQ Tel: 01923 855857 www.hertsmerejewish-pri.herts.sch.uk Headteacher: Mr Stephen Isaacs
Ilford Jewish Primary School Carlton Drive, Ilford, Essex IG6 1LZ Tel: 020 8551 4294 www.ilfordjewish.redbridge.sch.uk Headteacher: Mrs Roz Levin
Michael Sobell Sinai School Shakespeare Drive, Kenton, Middlesex HA3 9UD Tel: 020 8204 1550 www.sinaischool.com Headteacher: Mr Robert Leach
Moriah Jewish Day School Cannon Lane, Pinner, Middlesex HA5 1JF Tel: 020 8868 2001 www.moriah.harrow.sch.uk Headteacher: Rev. Alan Shaw
Wolfson Hillel Primary School 154 Chase Road, London N14 4LG Tel: 020 8882 6487 www.wolfsonhillel.enfield.sch.uk Acting Headteacher: Mr Rick Barnes
JFS The Mall, Kenton, Middlesex HA3 9TE Tel: 020 8206 3100 www.jfs.brent.sch.uk Headteacher: Mr Jonathan Miller
King Solomon High School Forest Road, Barkingside, Ilford, Essex IG6 3HB Tel: 020 8501 2083 www.kshsonline.com Headteacher: Mr Spencer Lewis
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Trustees’ Annual Report For the Year Ended 31st December 2012
The details of the Charity, its trustees, professional service providers and key executives are set out on page 2 of this booklet.
Legal Status
The United Synagogue (US) was established for charitable purposes by the United Synagogue Act of 1870. It was formally registered as a charity on the 2nd June 1965, charity registration number 242552. The Schedule to the Act was previously the major constitutional document of the Charity. This has subsequently been augmented by the Statutes of the United Synagogue passed by the US Council in April 1999, which sets out the Charity’s objects and the role and powers of the Charity, its Trustees and its Council. Additional Byelaws set out the system of governance of local synagogues, and the Election Regulations set out the procedure for electing the Board of Trustees.
Structure, Governance and Management
Trustees
Overall responsibility for the activities of the US is held by the Board of Trustees which is elected by the Council of the US (see below) every 3 years. The Board of Trustees comprises a President, three Vice-Presidents and three Treasurers. Trustees serve for a three-year period and may be re-elected for a further three-year period in the same position. They may go on to serve for a similar period of time in other trustee positions. The Trustees at the date of this report, and those that served during the year are shown on page 2. In order to increase the involvement of women at the Trustee Board, during 2010 the Trustees invited three representatives from the United Synagogue Women to serve as women representatives at Board meetings. They have played an active and valuable part in the discussions and this representation was institutionalised in 2011 by ensuring that two of the these positions are elected by the US Council, with the remaining positions being filled by the Co-chairs of the United Synagogue Women. Trustees must have prior experience of serving on the Board of Management at one of our local synagogue communities. Trustees who stand for election have therefore had experience of lay leadership in the general Jewish community for which they are taking responsibility.
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Induction of Trustees is built on the wide knowledge and familiarity with the Charity that Trustees must have previously had at a local and sub-committee level. The Chief Executive and senior professionals meet new Trustees soon after their election and provide intensive briefings on the Charity. The External and Legal Services Director (formerly Company Secretary) provides advice and guidance on the statutory responsibilities of Trustees and is on hand to provide guidance on these matters throughout the Trustees’ term of office. The Board of Trustees meets once a month to take strategic and policy decisions. These meetings are attended by the Chief Executive, and other members of the senior management team as appropriate The Board of Trustees appoints a number of sub-committees for the better working of the Charity. These sub-committees are given specific responsibilities and make relevant recommendations to the board. Responsibility for the religious direction and guidance of the US is vested in the Chief Rabbi.
US Council
The Council represents the membership of the US, and has the following four powers:
• To elect and remove Trustees;
• To consent to proposed amendments to the constitution of the US;
• To admit/discontinue the membership of any synagogue to the US;
• To consider the budget and accounts of the US. The Council is elected triennially by members of the boards of management of local synagogues. Each synagogue has a number of Council Representatives based on the size of synagogue’s own membership. All current Trustees are also members of Council, as are the immediate previous set of Trustees. There are in addition a limited number of life members including all past Presidents. Council meets at least four times a year.
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The Synagogues
The US has 50 Member, 11 Affiliate and 1 Associate Synagogues. Since the beginning of 2012, Enfield and Winchmore Hill, Highams Park and Chingford and Wanstead and Woodford Synagogues, all formerly Affiliates, have become Member Synagogues; the last two in March 2013. Hadley Wood, a former satellite community of Cockfosters and N. Southgate Synagogue became a Member Synagogue in its own right in January 2013.
Member Synagogues
The member synagogues are the branches of the US. The day to day responsibility for running the individual member synagogues is delegated by the Trustees to local Honorary Officers and to the Boards of Management who are elected either annually or biennially by the members of the local synagogues. The Byelaws regulate the powers of the local Honorary Officers and the conduct of local synagogue activities. The religious affairs of the individual member synagogues are run by the local Rabbi and, where appropriate, a Rabbinical Team and/or Chazzan, and the wardens (who are part of the team of Honorary Officers) under the overall guidance of the Chief Rabbi. Professional administrators are employed at most synagogues to provide the local lay leadership with administrative support in the effective management of their local community. Local synagogues collect annual membership contributions on behalf of the US from their members. A proportion of these – the communal contribution – is allocated to the Centre for the services provided generally and to support the further development of the Charity. The remainder and other donations received are retained and administered locally according to US rules, and are used to run the local community. Much of the expenditure and the activities of the US are at local community level. Our 50 member communities continue to provide a highly valued and quality service to their members, ensuring that our Synagogues are vibrant and exciting centres of Jewish life, engaging and transforming our members in their Jewish lives, as outlined in our vision statement.
All of our synagogues are conscious of their part in the Charity and recognise the mutual responsibility they share for the wider Jewish community of which they are a part. Synagogue activities overall are characterised by the values of authentic, inclusive and modern orthodox Judaism that the US espouses.
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Affiliate Synagogues
These are synagogues which are constitutionally one step removed from the US, and whose relationship to the Charity is governed by the Affiliate Scheme. They are independent legal entities which do not form part of the Charity but which through their affiliation benefit from certain services The Affiliates govern their synagogues under the Byelaws, as varied by the Affiliate Scheme, and pay an annual affiliation fee to the Charity. The Trustees continue to encourage the Affiliates to move towards full membership.
Foundation Schools
The Trustees of the United Synagogue have the responsibility of appointing the foundation governors to the Board of Governors at each of the schools. The United Synagogue has no involvement in either the day to day running of the schools or their upkeep, which is the responsibility of their respective Boards of Governors.
Professional Staff
The Board of Trustees delegates its powers for the day to day running of the Charity as a whole to the Chief Executive and, through him, to the Senior Management Team. There are four Divisions in the US which are headed by Directors, all reporting to the Chief Executive. 1. The newly appointed Operations and Finance Director has direct responsibility for the Central Support Services including Finance, Property, Information Technology and Human Resources. 2. The Community Services Director is responsible for the Community Division and, together with the Director of Living and Learning, is also responsible for the Tribe and the Living, Learning and Caring departments. 3. The External Services (Commercial) Director is responsible for Kashrut and Eruvin. 4. The External and Legal Services Director is responsible for in house legal advice, the London Beth Din and the Burial Society. Additionally, the Consultant Marketing Director is responsible for the marketing, fundraising and communications strategy of the US and also reports directly to the Chief Executive.
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The Vision and Mission of the United Synagogue
Our Vision
Inspired US members, with enriched lives, passing our heritage on to future generations
Our Mission
To engage our members with mainstream, orthodox Jewish living, learning and caring
Our values
Authentic, inclusive and modern Torah Judaism
Subsidiary Companies
A list of these is set out in Note 33 of the Notes to the Financial Statements.
The United Synagogue Kashrut Board, which was a separately registered company and charity, ceased trading during 2012, its business activities being assumed by the parent charity. Having been deemed superfluous to requirements, the Directors/Trustees of the United Synagogue Kashrut Board instructed that it be deregistered as a charity. It has been removed from the Register of Companies as at 14th May 2013.
The activities of the other trading subsidiaries account for a very small proportion of the Charity’s overall activities. No significant assets or liabilities are held in the subsidiary companies.
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Aims and Objectives
The aims and objects of the US are:
• To found, build, maintain, conduct, promote and develop within the United Kingdom, Synagogues which conform to the Form of Worship for persons of the Jewish religion.
• To advance education and to provide instruction in religious subjects to persons of the Jewish religion.
• The relief of poor persons of the Jewish religion, and to provide means of burial for persons of the Jewish religion.
• To advance the charitable purposes of other Jewish bodies by the making of grants or loans to them including contributing with other Jewish bodies to the maintenance of a Chief Rabbi and of other ecclesiastical persons, and to other communal duties devolving on metropolitan congregations.
• Any other charitable purposes in connection with the Jewish religion.
Our objectives
Our objectives are set to reflect our faith and communal aims. Each year the trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary guidance on the advancement of religion for public benefit.
Significant Activities and Achievements
A New Chief Rabbi
Perhaps the most significant achievement of 2012 was the conclusion of the selection process for the new Chief Rabbi, to follow in the footsteps of Lord Sacks when he steps down at the end of August 2013. It was with great anticipation and excitement that the selection was announced in December 2012 of Rabbi Ephraim Mirvis, and this appointment was extremely well received by the community. The process was time consuming and robust, but having interviewed a significant number of eminent and scholarly Rabbonim, it was clear to all that Rabbi Mirvis was a wonderful and inspired choice. We look forward to a new era of Rabbinic leadership with enthusiasm.
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Young US
As part of the ongoing efforts to engage and promote the younger element of the community into United Synagogue activities, particularly within our communities, the President and Trustee Board have focussed much attention on creating a resource within Tribe catering to the 21 to 35 year olds, as well as providing significant assistance to market the initiative. This included the nurturing of a group of volunteers working with the Professional Team in developing activities, events and programmes. As part of the investment, the US has employed a US Living & Learning couple based in the Hampstead community, working in partnership with Rabbinic teams at St Johns Wood and South Hampstead, who are creating a series of events for this age group, including Friday Night Dinners, activities based around the Chaggim and special events such as a Cholentfest. The results have been excellent, with hundreds of young people participating throughout the year.
Women Chairmen
During the year the Trustee Board, working with our rabbinic leaders, established the necessary framework to allow for women Chairmen of our communities. This was duly passed by the United Synagogue Council in their December 2012 meeting, paving the way for women candidates to stand for the senior lay position at Community level during the May 2013 elections. Nine women have since been elected for the very first time as Chairs of their Synagogues.
P’eir
P’eir has been working to increase the resources available to our Rabbis and Rebbetzens to enable them to develop the services and programmes that they provide to members of their local communities.
This year saw the introduction of a designated Rebbetzens’ programme, led by two senior Rebbetzens, and the establishment of Rabbis’ ‘affinity groups’ for rabbinic teams, associate/assistant Rabbis and senior Rabbis, and in addition US policies regarding grievance, poor performance and disciplinary procedures for our Rabbis, were successfully updated and revamped.
Resource has been allocated to create and implement a mentoring programme with the initial focus on supporting associate/assistant Rabbis, and a new online resource, essentially a ‘Rabbi-Wiki’, was created and is available to all US Rabbis.
Burial
We have devoted significant time and resources towards the plans for the expansion of the Bushey cemetery grounds and creation of new prayer halls. There were challenges which required adjustments to the original proposals which have been resolved. We are now in the final stages with the next step being to seek approval from the U.S. Council.
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Visits to both Bushey and Waltham Abbey cemeteries are now a more pleasant and accessible experience due to the introduction of two ‘state of the art’ interactive kiosks. These provide visitors with information on the burial location of their loved ones and the services that are taking place during the week. At Bushey cemetery, a section has been allocated for our members who belong to the Persian community and burials have begun.
Our maintenance programme has again proved to be popular, and members remain keen on purchasing plots at our cemeteries to guarantee where they will be buried. The demand for burials in Israel is rapidly growing and the section we purchased at the Eretz Hachaim cemetery has been fully allocated and in response we have acquired a further 28 plots.
US Chesed
Twenty three communities took part in 12 training sessions which ran throughout the year for US Community Cares volunteers. In the run-up to Rosh Hashanah, USCC volunteers from 40 communities delivered 1,200 honey cakes to vulnerable and isolated members of our community and at Pesach, over 600 families benefitted from a combination of vouchers, food parcels and assistance in attending communal Sederim.
Through the United Synagogue Youth Charity’s Chesed Bursary Fund, nearly £20,000 was spent on bursaries which enabled 25 young people to go on Tribe Israel Tour and summer camps, who otherwise would not have been able to participate due to financial constraints.
Project Chesed ran numerous initiatives including; a well-received silver-cleaning project by young people from Kisharon who visited communities and polished their silver and Judaica, collections of winter clothing for World Jewish Relief and emergency life support skills training.
September 2012 saw the launch of the Stillborn Support Group (SSG) and helpline for people who have suffered a stillbirth and are struggling to cope. This is an extremely sensitive issue and we are satisfied that the formation of the SSG is a suitable response allowing our members to turn to someone appropriate in these tragic circumstances.
We have continued our support for Jewish Visiting, both in hospitals and prisons, to ensure an adequate supply of Jewish Chaplains by maintaining an ongoing programme of recruitment, training, development and authorisation to ensure that no Jewish hospital patient or prisoner is without a member of similar faith to talk to.
Tribe
Tribe has been working tirelessly with many of our communities during the year, whether it is assisting with Shabatonim, providing resources and leaders for local programmes such as the Challenge or the Learn2Lead programme, the Aleph Champ reading resource, or simply providing grants for worthy local events. Furthermore, Tribe launched a new curriculum for US Chederim and introduced a new Siddur for children. Both of these projects will make for an exciting, rewarding and hands-on learning experience.
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Our annual events, including ‘Chanukah on Ice’ and a day trip to Cadbury World both sold out, with hundreds of children and families taking part, and of course the After School Clubs, Summer Camps, Summer Tour and Minigap programmes continue to be extremely popular.
Tribe has also contributed significantly to our Jewish schools, running events both in the schools and on various trips outside school premises, providing Madrachim, and informal Jewish education resource and engagement.
Over 500 campus gift packs were hand-delivered to Tribe members who had just finished school year 13, and 238 new members joined TCM (Tribe Community Membership) in 2012. We have successfully integrated the Tribe membership database with the main US K2 membership system to help improve the management of our data and the way we communicate with our Tribe members.
Living & Learning
With the Olympic Games taking place in Summer 2012 in London, Living & Learning helped to organise social and educational programmes for tourists and our members.
Our programmes are proving to be extremely popular and valued including the Newly Weds sessions which are expanding to more communities in 2013, and the Rabbinic Intern programme which has received excellent feedback from both the interns and host communities. The latter programme has proven to be very beneficial to the US and a number of our recent senior rabbinic appointments are graduates of the programme.
We organised the first national ‘Cheder Teachers’ Conference’, attended by over 50 teachers, and have also adapted and introduced the Tribe Aleph Champ Hebrew reading programme to 7 schools and 14 Chedarim.
Community Service Division
In addition to providing a constant service to members and synagogues, the CSD has appointed a new “roving” administrator who will provide assistance to communities where required. This has been especially welcomed by the smaller communities who do not have the resources or need for a full time administrator.
We are delighted to welcome the communities from Enfield and Winchmore Hill, Highams Park and Chingford, Wanstead and Woodford and Hadley Wood who have joined as full member synagogues and we are assisting with their full integration into the US family.
We have also introduced a well-received MEP (Marriage Enhancement Programme) Kallah 10 week training course which was attended by 100 participants.
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Member Synagogues:
Our member synagogues are constantly striving to provide a healthy mixture of educational, social and cultural programming for their members, as well as the huge efforts required to run the Saturday morning services, ensuring that there is always something for everyone. Some highlights of these initiatives have included Bat Mitzvah courses, baby blessings, Friday night dinners, community Shabbatons, a dinner with Boris Johnson, and much more.
Over the past year, several of our communities have applied for planning permission for Eruvim, including Barnet, Woodside Park, Chigwell & Hainault and others, with some being approved in 2013.
As communities grow in numbers they look to recruit new Rabbinical and other inspirational leaders that can provide engaging activities to a targeted age group. Therefore in 2012, four communities appointed new assistant Rabbis and one community appointed a US Living & Learning Education Programme Director.
KLBD
Our licensing has seen growth in all areas, with increases in manufacturers taking up licenses, more kosher functions and a large increase in the number of factories around the world now licensed by KLBD, which at the year end stood at 983. This is a significant achievement and since the year end we have breached the 1,000 level. We have also recently appointed a ‘Simcha Coordinator’ who is available to assist members of the community with those first steps in planning their simcha. The initial feedback has been excellent.
The number of people interacting with KLBD using our social media platforms has also seen notable growth, including over 1,000 downloads of the Kosher app which is available for iPhone and Android users. We have also had nearly half a million hits from people searching for Kosher.
2013 will see further developments in KLBD’s online social media presence and the creation of a new community KLBD website.
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Eruvin
Many of our communities are calling for the provision of an Eruv in their area, and we have provided a resource to help each community prepare for the complex process of permission and construction. We have been working this year on approximately 10 new Eruv projects. In addition we continue to provide the ongoing support once the Eruv has “gone live”. This includes managing the Shomrim who regularly check the integrity of the boundary; ensuring repairs are completed quickly and in accordance with Jewish Law; and assisting in sending text messages to those who have subscribed to their local Eruv committee to tell them the status of their Eruv just before Shabbat.
Administrative Services to Communities:
Property
We have seen progress across our synagogues and cemeteries during this past year, including completion of works at Ealing Shul, the granting of the lease at Golders Green for the new Rimon School, a consecration of the new Hackney Shul and the submission of the planning application for Bushey cemetery. In 2013 we are looking at the return of tenders for Radlett which may well lead to a new scheme and the completion of the Mill Hill Shul Hall works as well a major refurbishment project at Golders Green Synagogue
Marketing & Fundraising
In excess of £1 million has been raised from the annual Kol Nidrei appeal, a great achievement in light of ongoing financial difficulty across the community. The PR details surrounding the announcement of the next Chief Rabbi were successfully managed. The popular You & US website and email is constantly expanding and improving and now includes social media functions such as Facebook and Twitter.
HR
A new staff handbook was issued, incorporating all policies and procedures that employees should be aware of. The department also achieved an excellent rating as a sponsor licensee for compliance with issuing work permits.
IT
The IT department has worked hard to implement an online billing system to allow members to pay their Shul bills online. This new system is being rolled out in 2013.
IT were pivotal in the creation of the ‘Rabbi’s Wiki’ for P’eir, as well as the development of the Kosher app for KLBD. Furthermore, IT were instrumental in constructing a new KLBD licensing system, enabling the Kashrut department to better manage the licensing process.
22 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Finance
The finance team has continued to work closely with local Financial Representatives and Administrators to ensure effective financial management at the community level. We have strengthened the operational management of the Charity as a whole with the appointment of an Operations and Finance Director in April 2013.
Financial Review
Communities and the Centre
The finances of the US are broadly separated into two categories.
Restricted Funds Monies which are raised and spent at local level and which are under the control of the local community Boards of Management. Member synagogue communities are subject to the annual budget guidelines established by the US’s Treasurers. In broad terms it is hoped that each community will produce a positive result for the year, although this is not always so given the changing nature of both the community and its membership. A protocol document, last revised in April 2012, clearly identifies the responsibilities of the position of local lay financial representative and this must be signed before the financial representative takes office. It is therefore a realistic expectation that should a community be in financial difficulty, measures will be taken by the financial representative, in co- operation with other local honorary officers, to remedy the situation. This can be accomplished with or without the help of the Centre. The reporting of all related income and expenditure associated with communities is aggregated for Statement of Recommended Practice (SORP) reporting purposes and is shown under restricted funds.
Unrestricted Funds Monies which are raised from other sources, including Burial, Kashrut and Central Fundraising activities together with the communal contribution received from local communities are expended by the centre to effectively manage the Charity, fulfil its strategic imperatives and provide a range of services for member communities and the wider Jewish population. These income and expenditure streams are budgeted for and monitored by the Executive Board and in particular the Honorary Treasurers. The reporting of all related income and expenditure associated with the above is shown under unrestricted funds.
23 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
The “contribution model” currently in place in respect of the communal contribution from local member communities to the Centre has, in total, risen broadly in line with inflation over the last number of years. The method of calculating each member community’s contribution is based on a banding system, which frees communities to raise additional funds free from surcharge. The model was reviewed in detail in the financial year just ended and appropriate adjustments were made to address areas of obvious disparity. It was felt that there would be no major advantage to changing the current method of calculating the contribution. The Treasurers continue to address concerns raised by communities as and when the occasion arises, and the method of calculating contributions will next be reviewed in time for the 2014 budgets. The member synagogues’ contribution to the Centre is shown as unrestricted income within the Statement of Financial Activities (SOFA). The contribution of affiliated communities is also subject to annual review and it is the continuing aim of the Treasurers to ensure that their contribution is a fair proportion of the total communal contribution payable.
Financial Results
Total reserves at the year-end amounted to £75.2m (2011 - £72.2m). The year to 31st December 2012 showed an increase in unrestricted reserves in the year of £1.4m taking the total to £12.7m. Restricted funds increased by £1.7m taking the 2012 position to £62.4m. Unrestricted Funds
Apart from the contribution from member synagogues of £2.3m (£2.2m in 2011), the largest contribution to the Charity’s unrestricted funds is derived from the activities of the Burial Society. These monies together with some external government funding, KLBD income and fundraising activities provide the income platform from which the US drives its central departments to deliver against the strategic aims of the organisation. As can be seen in note 8 to the annual accounts, the range of services provided for the US member communities encompasses support of the Office of the Chief Rabbi and the London Beth Din, community development and educational programmes, other religious and communal infrastructure, training for our rabbinate and lay leaders, engagement with our young people, assisting our students on campus including substantial support for Jewish Chaplaincy, burial services and provision for Jewish dietary laws through both food certification and the supervision of restaurants and caterers, operating under a license granted by the London Beth Din There is in addition the cost of the support activities that must be funded from these income streams namely, the range of executive office costs including governance of the Charity; human resources, property and financial management; central accommodation costs and provision of organisation-wide information technology support. The winding-up of the United Synagogue Kashrut Board has allowed the reallocation of previously restricted funds of £0.6m to the unrestricted funds of the Charity. The Kashrut operation after absorbing the costs of the Beth Din showed an increase in funds, before support costs, of £0.6m in 2012 (£0.2m in 2011).
24 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Restricted Funds
These funds increased in the year from £60.8m by £1.6m to £62.4m. This is broadly split into two major areas of activity namely member synagogue funds and the Funeral Expenses Scheme (FES). In respect of member synagogues, the majority of the reserves are vested in property assets. However, in aggregate, communities have combined liquid funds of £5.4m, (£5.3m in 2011) of which £1.8m (£2.0m in 2011) are held in locally administered bank accounts, but are reported on and consolidated within the main charity under the local funds initiative. In 2012, the net increase of £1.6m in the restricted reserves position can be attributed in part to the capitalisation of a new building at our Mill Hill Synagogue. In respect of the FES scheme performance in 2012, this restricted fund increased in the year by £0.4m, resulting in a closing fund position of £9.3m.
Risk Management, Compliance and Internal Control
We have continued to develop our risk management systems and procedures throughout the year. The Compliance Officer has completed a number of audits and other management assignments covering risk and control issues highlighted within the organisation’s risk register, and has regularly reported progress to the Trustees, in accordance with the organisation’s Internal Audit Charter. In addition, a regular programme of site audits at Synagogues has been in place since 2010.
A major redrafting of the Charity’s Risk Register was completed during 2012 with the aim of producing a more focused and streamlined document to be actively used by the Executive in managing and mitigating risks faced by the Charity.
The role of Community Finance Liaison, combining assistance to local honorary officers and administrators with an element of internal control, has been enhanced by the appointment of additional staff. This is in response to the continuing enthusiasm at the community level for the support offered by the Community Finance Team.
As a result of these ongoing efforts, the Trustees are satisfied that the major risks to which the charity is exposed have been identified and that adequate systems or procedures have been established to manage them
Reserves
For consecutive Boards of Trustees, achieving a positive unrestricted reserves position and improving on that year on year has been a priority. The Trustees believe that the Charity should hold sufficient financial reserves in order to ensure that it can continue to operate and meet the needs of members in the event of unforeseen and potentially damaging financial circumstances. The Trustees’ aim is to set aside not less than an amount equivalent to three months operating expenditure. At 31 December 2012 the charity had free reserves (unrestricted undesignated) available of £2.3m.
25 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Pensions
At the 2009 year end the Jewish Memorial Council Pension Fund, a multi-employer fund used by a number of our staff, was closed to future accrual and affected staff were offered alternative options along the lines taken up by other staff members. The Trustees of the JMC Pension Fund commissioned its latest triennial actuarial valuation as at 31 December 2012 to determine the Fund’s ability to meet its obligations. The results of this valuation will be released in due course but the United Synagogue is aware, following an update from the JMC Pension Fund Trustees that there may be a shortfall due to current market conditions. The JMCPF Trustees have been exploring a number of options and the participating employers will be notified of the outcome soon.
Investment Policy
The Investment Committee meets quarterly to review both the performance reported by our fund managers and how we can make best use of other cash balances within the FES scheme that may be available from time to time. A number of non-Trustees, who are professionals in the financial services sector, serve as members of this committee and provide advice and guidance on investment matters. J. P. Morgan were appointed as the fund managers towards the end of 2010 although certain minor investments remain with UBS. The US’s investments presently are restricted to those cash balances and portfolio funds held on behalf of the Funeral Expenses Scheme, and these funds are held within a mixed portfolio comprising equities, hedge funds, alternative investments and cash. The scope of the Committee has been expanded to review the treasury aspects of all of the Charity’s cash balances. Investment performance was good in 2012 with better than expected growth.
Auditor
Crowe Clark Whitehill have expressed their willingness to continue as auditor for the next financial year.
26 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Volunteers
The US, like many charities, relies greatly on the continued efforts of dedicated volunteers and lay leaders across the whole range of its activities. To recognise the valued contributions of our volunteers, an award ceremony was held in November 2012 to honour their devoted service to their communities. Three volunteers were presented with special awards acknowledging their particular outstanding contributions, and one Honorary Officer was awarded the first President’s Award, initiated to recognise the importance of the tireless work of Honorary Officers across the United Synagogue, past and present. Thanks are due to all such volunteers including the Charity’s Trustees and the Women Representatives to the Trustee Board. The Trustees would like to thank the members of the following committees, who assist the Trustee board by providing specialist advice, guidance and oversight across a number of areas.
• Property • Audit Review • United Synagogue Women • Investment Committee • Remuneration Committee • Visitation • Burial Committee • Rabbinical Council
The Trustees would also like to express their appreciation to the Chief Rabbi for his unstinting energy and commitment and to the Dayanim, Rabbonim and all of the US staff under the expert leadership of Jeremy Jacobs for their tireless efforts on behalf of the US.
Stephen Pack – President On behalf of the Board of Trustees 17th June 2013
27 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.
Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incoming/outgoing resources for that period. In preparing these financial statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
28 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Independent Auditor’s Report to the Trustees of United Synagogue
We have audited the financial statements of United Synagogue for the year ended 31st December 2012 which comprise the Consolidated Statement of Financial Activities, the Charity and Group Balance Sheets, the Consolidated Cash Flow Statement and the related notes numbered 1 to 37.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charity’s trustees as a body, in accordance with Section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 15 of that Act.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.
In addition we read all the financial and non-financial information in the Trustees’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
29 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the group’s and the charity’s affairs as at 31 December 2012 and of the group’s incoming resources and application of resources for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Charities Act 2011.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
• the information given in the Trustees Report is inconsistent in any material respect with the financial statements; or
• returns adequate for our audit have not been received from branches not visited by us; or
• sufficient accounting records have not been kept by the parent charity; or
• the financial statements are not in agreement with the accounting records and returns; or
• we have not received all the information and explanations we require for our audit.
Crowe Clark Whitehill LLP Statutory Auditor London
Date: 1st July 2013
30 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2012
Unrestricted Restricted Total Total funds funds 2012 2011 Note £’000 £’000 £’000 £’000 Incoming resources Incoming resources from generated funds Voluntary income: Membership income 2 2,344 7,073 9,417 9,283 Donations & gifts (including tax reclaimed) 3 1,486 9,306 10,792 9,438 Grants receivable 4 - 87 87 480 activities for generating funds: Affiliation fees 118 - 118 119 Other Synagogue income - 2,456 2,456 1,791 Income from trading of subsidiary undertakings 84 - 84 81 investment income: Investment income 5 188 561 749 596
Incoming resources from charitable activities Burial Society 2,789 - 2,789 2,698 Funeral Expenses Scheme - 2,375 2,375 2,294 Other non Synagogue income 6 4,195 - 4,195 3,813 Other incoming resources Net gain on disposal of tangible fixed assets 9 237 246 1,225
Total incoming resources 11,213 22,095 33,308 31,818
Resources expended Costs of generating funds Costs of generating voluntary income 276 - 276 257 Investment management costs - 34 34 27
Charitable activities 8 11,713 18,309 30,022 28,657 Governance costs 11 235 44 279 242 Other resources expended 12 5 - 5 158
Total resources expended 12,229 18,387 30,616 29,341
Net (outgoing) / incoming resources before transfers (1,016) 3,708 2,692 2,477 Transfers Gross transfers between funds 31 2,415 (2,415) - -
Net incoming resources before other 1,399 1,293 2,692 2,477 recognised gains and losses
Other recognised gains and losses Net (losses) / gains on investment assets 17 - 275 275 (159)
Net movement in funds 1,399 1,568 2,967 2,318
Fund balances brought forward at 1 January 11,348 60,883 72,231 69,913
Fund balances carried forward at 31 December 12,747 62,451 75,198 72,231
Restricted funds brought forward and carried forward include £107,000 of endowment funds (2011: £111,000) (see Note 27). All endowment fund movement during the year is included in the restricted funds column. All amounts relate to continuing activities.
The notes on pages 35 to 48 form part of these financial statements.
31 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
BALANCE SHEETS as at 31 December 2012 Charity Group
2012 2011 2012 2011 Note £’000 £’000 £’000 £’000
FIXED ASSETS Tangible fixed assets 16 67,742 65,597 67,742 65,597
INVESTMENTS 17 3,462 3,144 3,462 3,114
71,204 68,741 71,204 68,741
CURRENT ASSETS Stock 18 23 22 23 22 Debtors: amounts due after more than one year 19 49 63 49 258 Debtors: amounts due within one year 20 2,614 1,969 2,627 2,721 Medium & short term deposits 21 6,955 5,523 6,955 5,523 Cash at bank 21 2,269 2,432 2,517 2,681
11,910 10,009 12,171 11,010
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 24 4,704 3,856 4,738 3,986
NET CURRENT ASSETS 7,206 6,153 7,433 7,024
TOTAL ASSETS LESS CURRENT LIABILITIES 78,410 74,894 78,637 75,765
LONG TERM LIABILITIES Loans: amounts payable after more than one year 23 2,500 2,850 2,500 2,850
PROVISION FOR LIABILITIES & CHARGES 26 939 684 939 684
3,439 3,534 3,439 3,534
NET ASSETS 74,971 71,360 75,198 72,231
CAPITAL FUND Endowment funds 27 39 43 107 111
INCOME FUNDS Restricted funds 28 62,167 59,951 62,344 60,772 Unrestricted funds 29 12,765 11,366 12,747 11,348
TOTAL FUNDS 74,971 71,360 75,198 72,231
These Accounts were approved and authorised for issue by the Trustees of the United Synagogue on 17th June 2013
Russell Tenzer Brian Markeson Stephen Lubinsky
The notes on pages 35 to 48 form part of these financial statements.
32 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2012
2012 2011 £’000 £’000
Net cash inflow on operational activities ( see note 1 ) 3,620 2,647
Returns on investments and servicing of finance Dividends and interest received 173 70 Interest paid (266) (248)
Net cash outflow from returns on investments and servicing of finance (93) (178)
Investing activities Payments to acquire tangible fixed assets (3,230) (1,247) Proceeds from sale of tangible fixed assets 1,042 2,583 Purchase of investments (77) (87) Withdrawals from investments 34 27 Proceeds from disposal of investments (40) 10
Net cash (outflow) / inflow from investing activities (2,271) 1,286
Management of liquid resources Medium & short term deposits (1,432) (3,523)
Net cash (outflow) from management of liquid resources (1,432) (3,523)
Financing Repayment of borrowings - (98)
Net cash outflow from financing - (98)
(Decrease) / Increase in cash (176) 134
33 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2012 (continued)
NOTES TO CASH FLOW STATEMENT 1. Reconciliation of operating surplus to 2012 2011 net cash inflow on operational activities : £’000 £’000
Net incoming resources for year 2,692 2,477 Net interest payable 93 178 Depreciation charge 294 378 Non-cash acquisition of property (750) (156) Non-cash disposal of assets 435 - Adjustment of prior year non-cash property acquisition - 92 Trading loss of wound up subsidiary - 147 Profit on disposal of tangible fixed assets (246) (1,225) (Increase) / decrease in stock (1) 21 Decrease in debtors 94 1,577 Decrease in long term debtors 14 195 increase / (decrease) in creditors and accruals 740 (1,177) Increase in gross provisions 255 140
Net cash inflow on operational activities 3,620 2,647
2. Analysis of changes in net funds
Balance at Balance at 1-Jan-12 Cash flow 31-Dec-12 £’000 £’000 £’000
Cash at bank and in hand 2,681 (164) 2,517 Overdraft - (12) (12) 2,681 (176) 2,505
Debt due after one year (2,850) 350 (2,500) Debt due within one year - (350) (350) (2,850) - (2,850)
Current asset investments 5,523 1,432 6,955
5,354 1,256 6,610
3. Reconciliation of net cash flow to movement in net funds
2012 2011 £’000 £’000
(Decrease) / Increase in cash in the period (176) 134 Cash outflow from decrease in debt and lease financing - 98 Cash inflow from decrease in liquid resources 1,432 3,523
Change in net funds resulting from cash flows 1,256 3,755
Movement in net funds in the period 1,256 3,755
Net funds at 1st January 5,354 1,599
Net funds at 31st December 6,610 5,354
34 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
United synagogue for year ended 31 December 2012 Notes to the financial statements
1. ACCOUNTING POLICIES
Basis of preparation The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” published in March 2005 and applicable accounting standards.
The Statement of Financial Activities (SOFA) and balance sheets consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
No separate SOFA has been presented for the Charity alone as permitted by paragraph 397 of the SORP 2005.
Associate and Affiliated Synagogues and Day Schools Although the Charity has legal title to the Affiliated Synagogues’ properties held by the United Synagogue Trusts Ltd., for practical reasons these properties have not been consolidated into the balance sheets in the fixed assets schedule as the Charity does not exercise either day to day control over these assets or in fact over the operations of these communities, which are therefore not consolidated within the SOFA. In addition, the Charity does not exert day to day control over the Associate Synagogue or affiliated Day Schools and, as a consequence, the results of these entities together with their assets and liabilities have not been consolidated.
Fund accounting Unrestricted funds are those which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Designated funds comprise unrestricted funds that have been designated by the Trustees for particular purposes.
Restricted funds are to be used in accordance with restrictions imposed by donors or which have been determined to have been raised by the Charity for particular purposes. The costs of raising and administering restricted funds are charged against the specific fund with the exception of the central administration costs of the Funeral Expenses Scheme (FES).
Investment income and gains are allocated to the appropriate fund. Tax reclaims arising on Gift Aid donations are allocated as per the original donation.
35 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Incoming resources All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:
• Membership income is treated as a donation and is accounted for when received.
• The entitlement to Legacies is recognised at either the earlier of the Charity being notified of an impending distribution or the legacy being received. No value is included where the legacy is subject to a life interest held by another party.
• Donated services and facilities are included at the value to the Charity where this can be quantified. No amounts are included in the financial statements for services donated by volunteers.
• Gifts in kind are included at the value to the Charity and recognised as income when they are received. Gifts donated for resale are included as income when they are sold at the price they are sold
• Grants where related to performance and specific deliverables are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of its recognition, it is deferred and included in creditors; where entitlement occurs before income being received the income is accrued. Capital grants are accounted for as income as soon as they are receivable.
• Conduit funds: Occasionally the Charity acts as agent for other organisations and receives funds on their behalf. These funds are not recognised as income and are excluded from the SOFA and balance sheet.
Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The following specific policies apply to categories of expenditure.
• Grants are charged to the SOFA when a constructive obligation exists not withstanding that they may be paid in future accounting periods.
• Fundraising costs are those incurred in seeking voluntary contributions. Costs incurred in producing the Charity’s newsletters and website are allocated between fundraising and other cost centres on the basis of the content that relates to these areas.
• Support costs, which include the central or regional office functions such as general management, payroll administration, budgeting and accounting, information technology, property portfolio management, human resources, and financing are allocated in direct proportion to the total expenditure (staff costs, depreciation and other) on each charitable activity.
• Governance costs are the costs associated with the constitutional and statutory requirements of the Charity
• Other resources expended are those costs necessarily incurred by the Charity but which do not fall within the categorisation of its other activities.
36 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Tangible fixed assets and depreciation
Property Additions to the portfolio prior to 1 January 1996 have been included at the Trustees’ best estimate of reinstatement cost or open market value at that date. Additions to the portfolio since 1 January 1996 have been included at cost. Properties, in which the equity is shared between the Charity and an employee, or former employee, have been valued at the net amount paid by the Charity towards the cost of the property at the date of acquisition.
The buildings at the burial grounds at Bushey and at Waltham Abbey have been included at a value which reflects the unamortized cost of the infrastructure works. Land purchased for future burial use has been included at cost.
No provision for depreciation is made on other freehold properties, other than the Centre at 305 Ballards Lane, London N12, as the on-going maintenance will ensure that the residual values are such that the depreciation is not material.
A house owned by the Charity, in which options to acquire the remaining equity have been contractually offered to the occupying employee, is being amortised over the remaining term of the arrangement which has been agreed by the Charity Commission and reported to HMRC for tax purposes.
The Trustees have carried out an impairment review of the properties of the Charity and are confident that there has been no reduction in the service potential of these properties and that the potential market value is greater than the book values. Accordingly, they feel that no impairment provision is necessary.
Other tangible fixed assets All other tangible fixed assets costing more than £1,000 are capitalised and included at cost.
Depreciation is provided to write off the usage of these assets over their expected useful life. This is calculated on the straight line basis using the following rates.
Synagogue Plant 20% per annum Cemetery Plant and Specialised Vehicles 20% per annum Other Motor Vehicles 33% per annum Office and Computer Equipment 33% per annum Office Premises 2% per annum
Land is not depreciated.
37 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
No amount is included in the accounts for religious appurtenances. These assets are excluded from the accounts because of their singular nature. Given their unique value their true worth would only be realised on sale. There is however an aggregate figure included for insurance purposes to ensure that any losses, however incurred, are within our whole policy cover.
The trustees have determined that the Charity holds no heritage assets as defined by FRS30.
Investments Listed investments are stated at market value at the latest available date to the year end.
Movements in value of investments are charged or credited to the funds to which they relate.
Stocks Stocks are valued at the lower of cost and net realisable value. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed.
Pension costs Members of staff were entitled to contribute to one of two schemes both independent of the Charity: a defined contribution scheme through a group defined contribution scheme operated by a commercial provider; and a multi-employer partial defined benefit fund operated by the Jewish Memorial Council.
The trustee of the Jewish Memorial Council Pension Fund notified participating employers of an increasing funding deficit and the Fund was closed to future contributions from 31 December 2009. Affected staff members were invited to join the existing group defined contribution scheme.
It is not possible in the normal course of events to identify the share of the underlying assets of the multi-employer pension scheme belonging to the individual participating employers. Accordingly, the accounting charge for the year represents only the Charity’s employers’ contributions payable. See Note 34.
Operating leases Rentals payable on operating leases are charged to the SOFA over the period to which the cost relates.
38 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
YEAR ENDED 31 DECEMBER 2012 NOTES TO THE FINANCIAL STATEMENTS
2. MEMBERSHIP INCOME Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Synagogue communal contribution 2,344 - 2,344 2,245 Synagogue membership income - 7,073 7,073 7,038 2,344 7,073 9,417 9,283
3. donaTIONS AND GIFTS Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Including tax reclaimed Member synagogues - 8,504 8,504 7,814 Capital gifts - 750 750 272 Operation Noach (Tribe Community Rabbis) - 17 17 35 Youth Charity - 35 35 - Unrestricted funds 1,486 - 1,486 1,317
1,486 9,306 10,792 9,438
4. gRANTS RECEIVABLE Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Jewish Education including Living & Learning - - - 373 Community Development - 60 60 60 Member synagogues - 27 27 47
- 87 87 480
5. inVESTMENT INCOME Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Rents received 53 523 576 526 Funeral Expenses Scheme investments income - 38 38 33 Deposits and bank interest 133 - 133 35 Other interest 2 - 2 2 188 561 749 596
6. oTHER NON SYNAGOGUE INCOME Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Jewish Education including Living & Learning 169 - 169 57 Beth Din 106 - 106 99 Kashrut 3,539 - 3,539 3,274 Community Development 10 - 10 - Tribe 210 - 210 208 Commutations 60 - 60 44 Other 101 - 101 131 4,195 - 4,195 3,813
7. SUBSIDIARIES The Charity has two wholly owned subsidiary undertakings which are incorporated in the UK. United Synagogue Design & Build Ltd. provides design and build services for the construction of new charitable buildings. U.S. Advertising Ltd. sells advertising primarily in local synagogue magazines.
The United Synagogue Kashrut Board ceased trading during 2012 and its business activities were assumed by the parent charity under the trading name KLBD. The United Synagogue Kashrut Board was removed from the Charity Commission’s Register of Charities on 26 June 2012 and it has been removed from the Register of Companies as at 14th May 2013.
U.S. U.S. Total Total Kashrut Board advertising Ltd design & Build Ltd 2012 2011 £’000 £’000 £’000 £’000 £’000
Turnover - 84 2,074 2,158 3,655 Cost of sales - (2,034) (2,034) (3,354) Governance costs - (2) - (2) (12)
Gross profit - 82 40 122 289
Gift aid payment to parent charity - (82) (40) (122) (83)
Profit / (loss) for the year - - - 206
Retained profit merged with parent charity (645) - - (645) -
Retained (loss) / profit carried forward - (18) - (18) 627
The two subsidiary undertakings had total gross assets at 31 December 2012 of £508,730 ( 2011: £95,045) and total gross liabilities at the same date of £317,632 ( 2011: £113,120).
39 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
YEAR ENDED 31 DECEMBER 2012 NOTES TO THE FINANCIAL STATEMENTS
8. CHARITABLE ACTIVITIES Staff Costs depreciation other Support Costs 2012 2011 (see Note 9) £’000 £’000 £’000 £’000 £’000 £’000 Restricted Funds: Member synagogues 7,258 102 10,761 1,654 19,775 18,286 Funeral Expenses Scheme - - 15 1 16 - Jewish Education including Living & Learning - - - - 406 Community Development - - 60 5 65 65 Operation Noach (Tribe Community Rabbis) - - 21 2 23 - Youth Charity - - 2 - 2 2 Grants payable (see Note 10) - - 46 4 50 39 7,258 102 10,905 1,666 19,931 18,798 Unrestricted Funds: Burial Society 1,758 66 901 249 2,974 3,305 Beth Din 580 2 58 58 698 702 Kashrut 1,495 16 859 217 2,587 2,699 Jewish Education including Living & Learning 281 - 411 63 755 726 Community Development 348 - 183 48 579 530 P’eir (Centre for Rabbinic Development) 95 - 38 12 145 124 Tribe 287 - 516 73 876 794 Community Grants - - 120 11 131 - Grants payable (see Note 10) - - 844 77 921 789 Miscellaneous 280 - 111 34 425 190 5,124 84 4,041 842 10,091 9,859
12,382 186 14,946 2,508 30,022 28,657
Restricted funds comprise staff, depreciation and other costs in the part of the note labelled Restricted Funds. Support costs have been allocated in direct proportion to the total expenditure for each charitable activity. All support costs are unrestricted funds other than an element of bank charges (£44,000).
The restatement of the 2011 comparative figures arises from the removal of the restriction on Beth Din and Kashrut funds following the winding up of United Synagogue Kashrut Board.
9. SUPPORT COSTS Staff Costs depreciation other 2012 2011 £’000 £’000 £’000 £’000 £’000
Executive Offices 1,050 26 390 1,466 1,282 Accommodation - 305 Ballards Lane - 78 245 323 267 Information Technology 73 3 377 453 538 Interest and bank charges payable - - 266 266 248 1,123 107 1,278 2,508 2,335
The support costs are shown in note 8 for additional information, but are still reflected in the SOFA as being unrestricted charitable activities other than the restricted element of bank charges as noted in Note 8. Support costs have been allocated in direct proportion to the total expenditure (staff costs, depreciation and other) on each charitable activity for 2012.
10. GRANTS PAYABLE 2012 2011 The major grants made during the year were: £’000 £’000
Chief Rabbinate Trust 300 300 UJIA (Kol Nidre Appeal) 221 202 University Jewish Chaplaincy (including Kol Nidre Appeal) 123 130 Community Security Trust (Purim Appeal) 38 38 Grants to individuals & other charities 208 91
890 761
11. goVERNANCE COSTS Unrestricted Restricted 2012 2011 Funds Funds £’000 £’000 £’000 £’000 Member Synagogues (a) - 43 43 48 Other Restricted Funds - 1 1 1 Burial Society (a) 10 - 10 27 Kashrut (a) 9 - 9 10 Executive Offices (b) 188 - 188 189 Executive Offices Legal Fees 26 - 26 (35) Other Unrestricted Funds (a) 2 - 2 2
235 44 279 242
Auditors’ remuneration (including VAT where not recoverable) as analysed: 2012 2011 £’000 £’000 Fees payable to the Charity’s auditors for audit of the Charity’s annual accounts 68 71
Fees for other services: Tax services 2 5
The basis of allocation for these costs is as follows: (a) These consist of the actual cost of the attributable audit fee together with any directly attributable legal fees. (b) These include an element of central costs deemed relevant to governance of the Charity along with direct costs deemed to be governance specific. All other executive office costs have been captured in note 9. 40 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
12. oTHER RESOURCES EXPENDED 2012 2011 £’000 £’000
Pension scheme wind-up costs - 3 Pension scheme administration 5 7 Loss of trading subsidiary struck off - 148
5 158
United Synagogue Publications Ltd. ceased trading during 2011 and was struck off the Companies House register in 2012.
13. STAFF NUMBERS AND EMOLUMENTS 2012 2011 Number number Average number of full and part-time persons employed during the year was as follows:
Synagogues - ecclesiastical 161 163 administrative 231 246 Jewish Education including Living & Learning (a) 22 30 Burial Society 60 63 Other charitable activities 120 117 Central support (Executive Offices) 29 26
623 645
(a) Excludes schools and part - time centres. 2012 2011 £’000 £’000 The aggregate emoluments of these persons were as follows: Salaries 12,208 12,111 Social security costs 1,108 1,076 Pension scheme contributions 319 367
13,635 13,554
2012 2011 Number Number The numbers of employees whose emoluments for the year (excluding the provision of accommodation) fell within the following bands were: £60,001 to £70,000 3 4 £70,001 to £80,000 5 5 £80,001 to £90,000 5 6 £90,001 to £100,000 3 2 £100,001 to £110,000 2 2 £110,001 to £120,000 - 1 £120,000 to £130,000 1 - £140,000 to £150,000 - 1 £150,000 to £160,000 1 -
The numbers of these employees to whom retirement benefits are accruing under defined benefit schemes 9 11 The numbers of these employees to whom retirement benefits are accruing under defined contribution schemes 14 15 a number of these employees have benefits accruing under both types of scheme.
£’000 £’000
Contributions in the year for these employees to defined contribution schemes 139 140
14. TRUSTEES’ EMOLUMENTS AND REIMBURSED EXPENSES
The Trustees received no remuneration for their services nor were any expenses reimbursed during the year (2011 nil).
15. oPERATING LEASE COMMITMENTS
At 31 December 2012 the charity was committed to making the following payments during the next year in respect of non cancellable operating leases: Land and Land and Buildings Buildings 2012 2011 £’000 £’000 Leases which expire: Within two to five years 26 26 More than five years 12 12 38 38
41 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
YEAR ENDED 31 DECEMBER 2012 NOTES TO THE FINANCIAL STATEMENTS
16. TANGIBLE FIXED ASSETS Freehold Motor Office i.T. Total and Long Vehicles Equipment Project Leasehold £’000 £’000 £’000 £’000 £’000 Charity and Group Cost / valuation At 1 January 2012 65,651 890 1,228 1,668 69,437 Additions during the year 3,103 37 90 - 3,230
68,754 927 1,318 1,668 72,667 Less: Disposals during the year (750) (71) (92) - (913)
At 31 December 2012 68,004 856 1,226 1,668 71,754
Depreciation At 1 January 2012 588 755 829 1,688 3,840 Charge for the year 83 65 146 - 294
671 820 975 1,668 4,134 Less: Disposals - (71) (51) - (122)
At 31 December 2012 671 749 924 1,668 4,012
Net Book Value 31 December 2012 67,333 107 302 - 67,742
Net Book Value 31 December 2011 65,603 135 399 - 65,597
With the inclusion of KLBD in the Charity following the dissolution of United Synagogue Kashrut Board, all fixed assets of the Group are now held in the Charity.
As described in the organisation’s accounting policies, no amount is included in the accounts in respect either of religious appurtenances or of synagogue and residential properties held in trust for affiliated communities. The Charity does not hold any heritage assets as defined in FRS 30.
YEAR ENDED 31 DECEMBER 2012 NOTES TO THE FINANCIAL STATEMENTS
17 INVESTMENTS Charity and Charity and group group 2012 2011 £’000 £’000
Market value at 1 January 3,144 3,243 Net monies invested 77 87 Management fee charged to capital (34) (27) Realised gains / (losses) on investments 40 (10) Unrealised gains / (losses) on investments 235 (149)
Total market value at 31 December 3,462 3,144
Historical cost as at 31 December 3,330 3,200
Cost Market Value 2012 2011 2012 2011 £’000 £’000 £’000 £’000
UBS AG Alternative Investments 137 98 143 139 UBS Cash 9 - 9 - JP Morgan Cash 251 172 274 172 JP Morgan Equities 1,425 1,291 1,491 1,221 JP Morgan Fixed Income 443 511 458 517 JP Morgan Miscellaneous 43 859 48 844 JP Morgan Options, Swap and Structured Assets 218 295 224 227 JP Morgan Alternative Exchanges 781 - 792 - JP Morgan Foreign Exchanges 23 (26) 23 (26)
3,330 3,200 3,462 3,144
The alternative investments include a Private Equity investment for a total committment of USD $350,000. As of 31 December 2012, calls had been issued for USD $175,495. The market values are the latest available as at the year end.
42 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
18. STOCK Charity and Charity and group group 2012 2011 £’000 £’000
Publications 11 6 Funeral requisites 12 16
23 22
19. LONG TERM DEBTORS Charity and Charity and group group 2012 2011 £’000 £’000
Long term loans to employees - Synagogues 33 31 - Centre 16 32
49 63
20. deBTORS DUE WITHIN ONE YEAR Charity Group 2012 2011 2012 2011 £’000 £’000 £’000 £’000
Trade debtors - Kashrut 623 - 623 590 - Singers Prayer Book 29 15 29 15 - Other - - 45 38 Other debtors - Burial Society other funeral charges debtors 91 92 91 92 - Burial Society tombstone fee debtors 137 83 137 83 - Chief Rabbinate Trust 18 144 18 144 - University Chaplaincy 230 186 230 186 - Affiliated Synagogues ( see below ) 133 169 133 169 - Tax repayments 220 436 220 436 - VAT 143 - 143 - - Miscellaneous debtors 782 663 782 763 Amounts due from Subsidiary Undertakings 32 34 - - Prepayments 176 147 176 205
2,614 1,969 2,627 2,721
AMOUNTS DUE FROM AFFILIATED SYNAGOGUES 2012 2011 £’000 £’000
Barking & Becontree 3 3 Catford 8 8 Chelsea 2 4 Enfield - 14 Harold Hill 2 2 Hemel Hempstead 2 1 Highams Park 30 17 Kingston & Surbiton 19 18 Peterborough 1 1 Romford 7 27 Ruislip 6 5 Staines 23 22 Wanstead & Woodford 15 37 Welwyn Garden City 15 10
133 169
Enfield became a member Synagogue during 2012 and the amount owing was converted to an advance (see note 30).
21. SHORT & MEDIUM TERM DEPOSITS Charity Group 2012 2011 2012 2011 £’000 £’000 £’000 £’000
Cash at bank Burial Society 45 59 45 59 Funeral Expenses Scheme 2 7 2 7 Synagogues 2,159 1,914 2,159 1,914 Other accounts 63 452 311 701 2,269 2,432 2,517 2,681
Short & medium term deposits Treasury Reserve 1,436 1,023 1,436 1,023 Fixed Term Deposits maturing in less than 1 year 5,519 2,100 5,519 2,100 Fixed Term Deposits maturing between 1 - 2 years - 2,400 - 2,400 6,955 5,523 6,955 5,523
43 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
22. SHORT TERM BANK BORROWINGS Charity and Group 2012 2011 £’000 £’000 Bank borrowing repayable on demand Overdraft - General Account 5 - Overdraft - Other accounts 7 - - 12 -
At 31 December 2012 the bank borrowing facilities, net of cash at bank, all repayable on demand, was available : £500,000 - Group Overdraft Facility, interest payable at 1.5% plus NatWest Bank Base Rate per annum. This facility is secured by NatWest through first Legal Charges over a large property owned by the parent charity.
23. LONG TERM BANK AND OTHER LOANS Charity and Group 2012 2011 £’000 £’000
Hamilton Terrace Commercial Mortgage 2,500 2,500 Non-bank loans re Hamilton Terrace 350 350 2,850 2,850 Repayable as follows: Amounts payable after more than one year Due within 2-5 years 2,500 2,850 2,500 2,850
Amounts payable within 1 year 350 -
2,850 2,850 At 31 December 2012 the loans and their terms were as follows: £2,500,000 - Commercial mortgage on an interest-only basis, the capital to be repaid in full by 2014, for the purchase of the freehold at 85 Hamilton Terrace from Allied Irish Bank. Interest has been fixed at 5.90% for the full term of the loan. The loan is secured by a charge on the property. £350,000 - Interest free loans from two benefactors, repayable in full by 2013, towards the purchase of the freehold at 85 Hamilton Terrace.
24. CREDITORS FALLING DUE WITHIN ONE YEAR Charity and Group 2012 2011 2012 2011 £’000 £’000 £’000 £’000
Bank borrowings ( see note 22) 12 - 12 - Loans repayable within one year ( see note 23) 350 - 350 - Creditors and accruals Trade creditors 772 474 817 615 Taxation and Social Security 445 333 448 431 Amounts owed to Subsidiary Undertakings 18 542 - - Other creditors 236 250 238 259 Accruals 1,580 1,290 1,582 1,618 Deferred income (see note 25) 1.291 967 1,291 1,063
4,704 3,856 4,738 3,986
25. deFERRED INCOME Balance at Prior year Current year Balance at 31 Dec. 2011 amounts deferrals 31 Dec. 2012 released £’000 £’000 £’000 £’000 Group: Kashrut (a) 96 (83) 183 196 Burial Society (b) 830 (153) 345 1,022 Community Development (c) 137 (65) 1 73
1,063 (301) 529 1,291
(a) This comprises certification income invoiced in advance of factory inspections, deposits from customers and advertising sold for the 2013 Really Jewish Food Guide. (b) Amounts paid in advance for funerals, tombstone maintenance and rent are all deferred. Funds are released when prepaid funerals or maintenance are carried out. (c) Funding deferred for the Champions of Change programme and funds raised through the 2010 Pesach Appeals for the CHESED programme as well as funding received for hospital and prison visitation carried forward to 2013.
26. PROVISION FOR LIABILITIES AND CHARGES Balance at Prior year Current year Current year Balance at 31 Dec. 2011 released additional spent 31 Dec. 2012 £’000 £’000 £’000 £’000 £’000 Charity and Group: Commutation of pensions to former employees of a 136 (18) 4 - 122 department now closed (a ) Settlement of property damage claims (b) 34 (16) 10 - 28 Provision for employee’s pension contractually guaranteed (c) 514 - 275 - 789 684 (34) 289 - 939
(a) The commitment is for the lifetime of the employees concerned. The provision is topped up each year to the amount estimated to be required for a further seven years. (b) The provision is the sum of the estimated excesses payable on outstanding claims at the year end under the Charity’s self-insurance scheme as advised by the Chaity’s brokers. (c ) The commitment is to a defined pension benefit upon the employee’s retirement in 2013.
44 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
27. endoWMENT FUNDS Balance at Resources Transfers to Balance at 1-Jan-12 expended other Funds 31-Dec-12 £’000 £’000 £’000 £’000
Member Synagogue funds (a) 43 (2) (1) 43
Charity 43 (2) (1) 43
United Synagogue Bequests and Trusts Fund (b) 68 - - 68
Group 111 (2) (1) 107
(a) The Member Synagogue funds consist of many small individual funds, which have in previous years been accounted for in a way which is consistent with endowment funds. It is believed that many, if not all, of these funds are expendable endowments. (b) The United Synagogue Bequests and Trusts Fund was established through the consolidation of many smaller charities. The objects of the charity are to further the religious, educational or other charitable work of the United Synagogue.
28. RESTRICTED FUNDS Balance at incoming Resources Transfers Balance at 1-Jan-12 Resources & expended (see note 31) 31-Dec-12 net gains on investment assets £’000 £’000 £’000 £’000 £’000
Member Synagogue funds - gross 59,151 18,468 (16,750) 472 61,341 Less advances (see note 30) (8,252) 1,109 (1,506) - (8,649)
Member Synagogue funds - net (a) 50,899 19,577 (18,256) 472 52,692
Funeral Expenses Scheme (b) 8,952 2,688 (54) (2,226) 9,360 Miscellaneous funds (c) 101 95 (81) - 115
Charity 59,952 22,360 (18,391) (1,754) 62,167
United Synagogue Kashrut Board (d) 654 - - (654) - United Synagogue Bequests and Trusts Fund (e) 1 - - 1 2 United Synagogue Youth Charity (f) 165 18 (2) (6) 175 820 18 (2) (659) 177
Group 60,772 22,378 (18,393) (2,413) 62,344
(a) Member Synagogue funds comprise those monies received, less those spent in connection with the management of each individual Synagogue. When a Member Synagogue closes, the funds are transferred to general unrestricted funds. (b) The Funeral Expenses Scheme allows members to subscribe a small annual sum, in addition to their Synagogue membership payment, to ensure that in due course their funeral expenses will be covered. On the occasion of a funeral there is a transfer from restricted to unrestricted reserves of a specified sum to reflect this. (c) Miscellaneous funds consist of several small funds, the principal fund being a building fund legacy. (d) The United Synagogue Kashrut Board supervises and licenses caterers and establishments and certifies the production of Kosher food products and ingredients. (e) United Synagogue Bequests & Trusts Fund is to further the charitable work of the United Synagogue. (f) The United Synagogue Youth Charity Is utilised to further the aims of Tribe.
29. UNRESTRICTED RESERVES Balance at incoming Resources Transfers Balance at 1-Jan-12 Resources expended (see note 31) 31-Dec-12 £’000 £’000 £’000 £’000 £’000
Other Charitable Funds: Unrestricted Reserves - Non designated (a) 10,673 11,129 (12,226) 2,550 12,126 Unrestricted Reserves -Designated for other purposes (b) 693 (1) (53) 639
Charity 11,366 11,129 (12,227) 2,497 12,765
U.S. Advertising Ltd. (18) 84 (2) (82) (18) (18) 84 (2) (82) (18)
Group 11,348 11,213 (12,229) 2,415 12,747
(a) Included in these is the Burial Society, the main function of which is to arrange for funerals and maintain cemeteries; and KLBD (formerly the United Synagogue Kashrut Board). (b) Funds, from an earlier sale of the SPEC building, have been set aside to fund Tribe (£17,000); to aid the new community at Barnet (£47,000); to aid the veteran community at South Tottenham (£250,000); for educational purposes (£78,000); for tagging Sifrei Torah and other valuables (£66,000); and for various other purposes (£181,000).
45 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
30. adVANCES TO SYNAGOGUE COMMUNITIES Balance advances deficits Repaid Balance 1-Jan-12 funded funded during 31-Dec-12 during year during year year £’000 £’000 £’000 £’000 £’000 MEMBER SYNAGOGUES : Barnet 246 - - (35) 211 Belmont 391 - - (361) 30 Bushey 494 - - (55) 439 Cockfosters (b) 91 - 35 - 126 Ealing 97 - 22 - 119 Edgware (a) 52 - - (10) 42 Enfield (b) - - 10 - 10 Finchley 739 - 202 (80) 860 Golders Green (a) 721 - - (6) 715 Hampstead 647 - 80 (35) 692 Hendon (b) 552 5 65 (40) 582 Ilford (a) 417 - 2 (11) 407 Kingsbury (a) 729 - 40 (3) 766 Luton - - 9 - 9 Mill Hill - 955 - - 955 Newbury Park 63 - - (10) 53 Northwood (a) 409 - - (269) 140 Palmers Green 18 - 9 - 27 Pinner (a) 1,071 - - (5) 1,066 Potters Bar - - 2 (2) - Radlett 453 - - (30) 425 Richmond 489 - - - 489 St. Albans (b ) 16 - (8) 8 St. Johns Wood 116 - - (116) - Shenley (b) 115 - 49 - 164 South London 82 - 21 (1) 102 Watford 52 - - (4) 48 Woodside Park 192 - - (28) 164
Total 8,252 960 546 (1,109) 8,649
SUMMARY Advances to meet deficits 2,713 - 546 206 3,053 Capital Advances 5,539 960 - 903 5,596 Total ( see note 28 ) 8,252 960 546 1,109 8,649
30. adVANCES TO SYNAGOGUE COMMUNITIES (continued) (a) Included within the advances are the following non interest bearing balances: 2012 2011 £’000 £’000
Edgware 42 52 Golders Green 260 266 Ilford 153 159 Kingsbury 21 21 Northwood 141 409 Pinner 1,000 1,000 Richmond 489 -
Total 2,106 1,907 (b ) Included in the deficits funded this year are the following amounts for prior years. 2012 2011 £’000 £’000 Cockfosters - 38 Enfield 5 - Finchley 109 - Hendon 45 - St. Albans - 16 Shenley 23 - 182 54
46 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
31. TRANSFERS BETWEEN FUNDS 2012 2012 2011 2011 Unrestricted Restricted Unrestricted Restricted funds funds funds funds £’000 £’000 £’000 £’000
Burial Society charge to FES for funerals 2,261 (2,261) 1,948 (1,948) Loss incurred by chronic deficit Synagogues without property (88) 88 (64) 64 Support for new and restructured communities - - (38) 38 Apportioned proceeds from sale of properties - - 783 (783) Interest charged on loans to communities 114 (114) - - Interest credited on FES and communities fund (50) 50 111 (111) Kol Nidre Appeal allocation to Communities (383) 383 (349) 349 Transfer of KLBD funds following 645 (645) - - dissolution of United Synagogue Kashrut Board Miscellaneous (84) 84 (52) 52
2,415 (2,415) 2,339 (2,339)
The transfers between funds show the net position in this regard as there can be transfers between funds within both restricted and unrestricted funds.
32. anaLYSIS OF ASSETS AND LIABILITIES BY FUND 2012 2012 2011 2011 Unrestricted Restricted Unrestricted Restricted funds funds funds funds £’000 £’000 £’000 £’000
Tangible fixed assets 12,277 55,467 12,118 53,481 Investments - 3,462 - 3,144 Net current assets 3,909 3,522 2,764 4,258 Total funds excluding long term liabilities and provisions 16,186 62,451 14,882 60,883
Long term liabilities 2,500 - 2,850 - Provisions for liabilities & charges 939 - 684 - 3,439 - 3,534 -
Total net assets 12,747 62,451 11,348 60,883
Charity Tangible fixed assets 12,277 55,467 12,118 53,481 Investments - 3,462 - 3,144 Net current assets 3,927 3,277 2,782 3,369 16,204 62,206 14,900 59,994 Total funds excluding long term liabilities and provisions Long term liabilities 2,500 - 2,850 - Provisions 939 - 684 - 3,439 - 3,534 -
Total net assets 12,765 62,206 11,366 59,994
‘Endowment fund net current assets of £107,000 (2011 £111,000) are included in restricted funds in the Group and of £39,000 (2011 £43,000) in the Charity.
47 The United Synagogue Trustees’ Report and Annual Accounts year ended 31 December 2012
Y33. SUBSIDIARY COMPANIES
The United Synagogue has the following wholly-owned subsidiary undertakings engaged in primary purpose activities: US Advertising Limited ( limited by guarantee ) United Synagogue Trusts Limited ( limited by guarantee ) The United Synagogue Youth Charity ( limited by guarantee ) (registered charity no. 294847)
United Synagogue Design & Build Limited (limited by guarantee)
The United Synagogue Kashrut Board, formerly a separately registered charity, was removed from the Charity Commission’s Central Register of Charities on 26 June 2012. It has also been removed from the Register of Companies as at 14th March 2013.
United Synagogue Trusts Limited did not trade during the year. United Synagogue Trusts Limited holds properties in trust on behalf of the Charity. The results of the other subsidiaries are incorporated in the accounts. Extractsof these are shown in note 7.
The United Synagogue Group includes all the above together with United Synagogue Bequests and Trusts Fund (registered charity number 1051619). All these entities are under the control of the United Synagogue Honorary Officers. The parent Charity comprises all the Group excluding the subsidiary undertakings and the United Synagogue Bequests and Trusts Fund.
34. PENSIONS
Prior to 30 June 2001 the organisation operated a defined benefit pension scheme, established under an irrevocable Deed of Trust by the United Synagogue for its employees. The scheme has now been fully wound up.
With effect from 1 July 2001, as agreed at the Council meeting of 19 April 1999, the Charity has established a defined contribution scheme for its employees in the form of a ‘group personal pension’ with Clerical Medical. As an alternative, employees were offered membership of the ‘Jewish Memorial Council Pension Fund’, which was a multi-employer occupational defined-benefit pension scheme open to any salaried person working for the Jewish Community in the UK. The current group personal pension scheme is now invested with Scottish Widows.
During 2009, the Trustees of the Jewish Memorial Council Pension Fund notified participating employers of a funding deficit and decided to close the scheme to future contributions from 1 January 2010. Affected members were invited to join the Clerical Medical arrangement. A full actuarial valuation of the Fund as at 31 December 2009 showed that the Fund was 99.5% funded on the ongoing basis. The level of deficit, £0.1m, was expected to be financed over a short period by investment returns. As a result contributions from participating employers to fund the deficit were cancelled from March 2011.
The next formal valuation of the JMC Pension Fund is due as at 31st December 2012 and will be available later in 2013. However, an interim update from the Trustees have indicated no material funding deficit exists.
It is not possible in the normal course of events to identify the share of the underlying assets of this multi-employer pension fund belonging to the individual participating employers. Accordingly, in line with the requirements of FRS 17, the accounting charge for the year of £319,000 (2011 - £374,000) represents only the United Synagogue’s employer contributions payable to defined contribution schemes.
35. CAPITAL COMMITMENTS
The following capital expenditure has been approved by the Trustees but not provided for in these financial statements.
2012 2011 £’000 £’000 Contracts placed: Member Synagogues 2,169 2,500
36. TAXATION
The United Synagogue is able to take advantage of the exemptions from taxation on income and gains available to charities and accordingly no taxation is payable on the net incoming resources. The charitable subsidiary undertakings are also able to take advantage of the exemptions from taxation on income and gains available to charities. No taxation charges on the results for the year arise in the non- charitable subsidiary undertakings because of available brought forward tax losses and because they have a policy of paying amounts equal to any taxable profits to the parent charity under gift aid.
37. CONTINGENT LIABILITIES
The Charity is ultimately responsible for the financial obligations of all Member Synagogue communities, should they default on any future liability. There is no current contingent liability.
48